Ray Meadows

Chesapeake Energy Unlikely To Remain this Cheap

The press release shows production was up 15% over Q3 2007 not down. The MTM hedge gain is really just a reversal of the June loss so its best ignored. The key to this company's value is figuring out the value of all its unproved reserves (i.e. the leaseholds) for the long term gas price. Tricky for short term traders - hence the low valuation right now while current gas prices are low. Since CHK can materially affect supply over the period of their hedges, my bet is on them.